After the recent Impulse downwards, price has started to consolidate. If price retraces to the previous structure level, it presents a beautiful shortening opportunity. Additionally, it lines up with 0.786 fib retracement which adds some nice confluence.

The recent impulsive move went to the upside. After that a flag pattern was formed. Most Traders would think that after the pattern was broken, they should go long. However, on the daily chart, the trend has been bearish for a long period of time. I have drawn a a resistance line which clearly has rejected the price. Most likely this flag pattern will develop into ...